What is the best response of firm A, given firm B is charging a High Price?
a. Charge a low price
b. Charge a high price
c. Charge zero, give the good away
d. All of the above
a
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When recessions are the result of slowing growth in potential output, the government's best policy is to:
A. decrease aggregate supply. B. promote saving and investment. C. reduce government spending. D. increase aggregate demand.
In the event that nominal short-term interest rates cannot be lowered further, the Federal Reserve might rely on ________
A) federal government fiscal policy B) targeting the fed funds rate C) quantitative easing D) targeting the inflation rate
Discouraged workers are not counted as unemployed because they are working
Indicate whether the statement is true or false
Oil and oil products remain the main fuel for cars, planes, ships, and power plants. The amount of oil still in the earth is finite. Given this information, the supply of gasoline is:
A. unit elastic. B. relatively elastic. C. relatively inelastic. D. greater than the quantity demanded.